The crisis in the automotive sector adversely affects Poland’s biggest producer of car seat covers.
“The situation is very difficult. We get fewer orders”, Jerzy Pieta, Inter Groclin Auto spokesman said.
However, he stresses that the company has been operating in difficult conditions for some time already. It was not only strong zloty but also the fact that car producers have burdened deliverers with their problems. Groclin has been under restructuring for many months.
“We’ve cut capacity, albeit not in the production business which may happen, however. We are looking for savings”, the spokesman explained.
In addition, the group is developing its second business in the chemical products for construction sector on the basis of Altax, a company Groclin had acquired. This business is supposed to generate PLN 40m (EUR 11.7m) this year.
As far as the production of seat covers is concerned, Groclin has signed multi-year-long contracts which will be renegotiated.
“The price won’t be changed, this is for sure. But deliveries may be cut”, the representative of the Polish producer said.
In his opinion, there are no reasons to worry that Groclin may have problems with cash flow despite big debt of PLN 120m and poor financial results.
“We have lots of assets which could be sold. This will help finance current operations”, Jerzy Pieta assured.
In summer, Groclin sold football team Dyskobolia. It still owns a stadium and a sports hotel as well as its headquarters in Grodzisk Mazowiecki.
(PLN 1 = EUR 0.293)